What we learned about how Cuyahoga County will spend $4.37 million on housing

MetroIn this photo take Oct. 26, 2010, a sold sign is displayed outside a house in Mayfield Hts., Ohio. Home prices are falling faster in the nation's largest cities, and a record number of foreclosures are expected to push prices down further through next year. (AP Photo/Amy Sancetta)APBy Michael Johnson, cleveland.comAdvance Local Express DeskCLEVELAND, Ohio — Cuyahoga County is dividing more than $4.37 million among three programs intended to support affordable housing development, home purchases and other housing needs.The money won’t operate as a single construction fund. Only $1.57 million is being offered directly to developers. Another $800,000 is reserved for down payment assistance, while a $2 million locally controlled fund could support projects ranging from home repairs to property purchases.These are five takeaways from the original article, which examined the county’s housing investment announcement and application deadlines.1. $1.57 million is being offered directly to developersThe county is accepting proposals for about $1.57 million from the federal HOME Investment Partnerships Program to construct, rehabilitate or preserve affordable housing.For projects containing one to 25 units, nonprofit developers must secure at least half of the total cost from other sources. County assistance is generally capped at $50,000 per unit and $450,000 per project.Applications are due Aug. 19, according to the county’s housing investment announcement.2. The federal money is intended to fill financing gapsThe HOME money generally covers only part of a development’s cost. Developers must combine it with private loans, tax credits, grants or other public funding.A county budget presentation offers an example of that leverage. Nine HOME-funded loans totaling $5.1 million were expected to support projects creating 557 affordable units and preserving 147 existing units in 2025.Those figures don’t mean the county paid the full cost of 704 units. They show how relatively small public loans can help larger projects complete their financing packages.3. A federal designation determines where some projects can qualifyOne financing option is available throughout Cuyahoga County. Another is generally limited to 51 municipalities participating in the county’s federally designated Urban County program.The designation allows the county to administer federal housing and community-development money on behalf of participating communities.Cleveland, Cleveland Heights, East Cleveland, Euclid, Lakewood, Parma, Brecksville and Hunting Valley are excluded. Projects in Cleveland and East Cleveland may qualify in limited cases when they serve residents of participating communities and the city contributes federal HOME money.4. The down payment money could assist about 47 buyersThe county has reserved $800,000 for down payment assistance for income-eligible homebuyers.Its draft 2026 action plan says the county provided nearly $1.05 million to 62 households during the previous two years. That averages about $16,981 per household.At that rate, the new allocation would assist approximately 47 buyers. The final number will depend on the rules, purchase prices, closing costs and assistance awarded to each household.The existing program generally serves buyers earning no more than 80% of the area median income. Buyers must contribute at least 3% of the purchase price from their own money or a qualifying gift.5. The $2 million pilot can support a wider range of housing needsThe largest share of the package is a $2 million locally controlled Housing Fund Pilot intended primarily for households earning between 80% and 120% of the area median income.Unlike federal HOME money, the pilot could support housing development, property acquisition, rehabilitation, accessibility improvements, home repairs, down payment assistance and revolving loans.The county is seeking an outside organization to administer the fund, oversee financing and coordinate public, private and philanthropic investment. Proposals are due Aug. 21.Michael Johnson brings nearly four decades of newspaper experience in reporting, editing, newsroom leadership, page design and digital publishing. He has led daily and weekly newsrooms in Pennsylvania,...